Correlation Between Expensify and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Expensify and Eaton Vance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Expensify and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Eaton Vance Multi Strategy, you can compare the effects of market volatilities on Expensify and Eaton Vance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Expensify with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Eaton Vance.
Diversification Opportunities for Expensify and Eaton Vance
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Expensify and Eaton is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Eaton Vance Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Expensify is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Expensify are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Multi has no effect on the direction of Expensify i.e., Expensify and Eaton Vance go up and down completely randomly.
Pair Corralation between Expensify and Eaton Vance
Given the investment horizon of 90 days Expensify is expected to under-perform the Eaton Vance. In addition to that, Expensify is 22.47 times more volatile than Eaton Vance Multi Strategy. It trades about -0.08 of its total potential returns per unit of risk. Eaton Vance Multi Strategy is currently generating about 0.17 per unit of volatility. If you would invest 838.00 in Eaton Vance Multi Strategy on January 19, 2024 and sell it today you would earn a total of 138.00 from holding Eaton Vance Multi Strategy or generate 16.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Expensify vs. Eaton Vance Multi Strategy
Performance |
Timeline |
Expensify |
Eaton Vance Multi |
Expensify and Eaton Vance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Expensify and Eaton Vance
The main advantage of trading using opposite Expensify and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Eaton Vance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eaton Vance will offset losses from the drop in Eaton Vance's long position.Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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